In a saucepan, add the milk and bring it to a boil.

When the froth forms on the top, turn off the heat and let the milk rest for a minute.

Add the vinegar and mix well. The milk will start to curdle. Mix again. If the curdling is not happening, add a little more vinegar.

Let it rest for 10 minutes. Slowly the milk will start to curdle, and you can see the curds.

Add the milk to the inner pot of the instant pot and press the yogurt button. The display should show "boil," and it will blink. Leave it for a few seconds, and it will beep and stay in the boil mode.

Cover the IP with lid, and in 20 to 24 minutes, when the boiling is complete, Instant Pot will beep, and it will go to the "Yogurt" mode automatically. Now turn off the IP and remove the lid.

Add the vinegar and mix well. The milk will curdle, and if the curdling is not happening, press the saute button again and let the milk simmer for two minutes. Then add one or two tsps of extra vinegar and mix. Please turn off the Instant Pot and let it rest for 10 minutes. The milk will curdle slowly.

PS - I never had to simmer the milk again. I have tried this method many times. With 1 tbsp of vinegar, the milk always curdles perfectly. Depending upon the milk temperature and the quantity, the boiling time might vary.

Meanwhile, put the cheesecloth or muslin cloth on top of a colander. I used my cheesecloth bag.

Pour the curdled milk mixture into the colander or the cheesecloth bag and drain the whey water. Gently rinse it with cold water to ensure paneer doesn't get the flavor of vinegar.

Gently press and squeeze out as much as water you can. Now tie the cheesecloth and hung it for ½ an hour. I usually hung it on my kitchen faucet.

After half an hour, remove the knot and fold the cheesecloth so that the paneer forms a bundle. Flatten this a little and place it on a flat surface. Now place a heavy object on top of this paneer bundle. Make sure the heavy object doesn't topple. A pressure cooker filled with water or heavy soapstone vessel works well. As you can see in the picture, I used a soapstone vessel.

Leave it for 2 to 3 hours so that the paneer sets well.

After 2 to 3 hours, remove the cheesecloth and refrigerate it for 30 minutes and then cut into cubes. I always refrigerate for 30 minutes before cutting the paneer. It makes it a bit firm.

That's it. Paneer is ready. Use it in your favorite curries, paratha, and other dishes.

Keep the heavy object for just 5 minutes, and then you can use it for sweets like kalakhand, rasmalai, rasgulla, etc. At this, it is more like ricotta cheese.